SECP warns public against investing in fraudulent schemes

Bank And Financial ,

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has once again warned the general public against investing in ponzi and pyramid schemes, multi-level marketing (MLM) and other online schemes, that promise high rates of return, a statement said on Thursday.

The SECP has noticed that a company, “International Business Solutions (Private) Limited” is prima facie raising illegal deposits from the public by offering profits thereon. It is clarified that the company does not hold any licence to collect deposits from the public.

Similarly, an online application, ‘Barwaqt’, is also found involved in offering financing facilities to the general public. To support its illegal activity, the mobile app is purported to be licensed by the commission.

It is; hereby, clarified that the aforementioned entity is neither registered nor licenced by the SECP.

In view of the foregoing, the public at large is expressly advised to refrain from dealing/investing in these entities. The SECP has initiated legal actions against these entities.

The SECP has time and again clarified that mere registration of a company does not authorise it to raise deposits from the public.

It is reiterated that raising unauthorised deposits from the general public, indulging in referral marketing, MLM, pyramid and ponzi schemes are unlawful activities in terms of section 301 of the Companies Act, 2017.

The SECP has made public a list of companies involved in unauthorised business activities such as illegal collection of deposits from investors by making false promises of exceptionally hefty returns.

The list of such companies is posted on the SECP official website.

Complaints or evidence against companies involved in unauthorised activities and illegal deposit taking can be sent at email ID .